Catch up on the week’s Japanese real estate related news in this summary pulled from our blog and sources around the web.
MLIT 2015 Q4 LOOK Report: Growth in Nagoya Land Prices Leads the Country
Real Estate Japan
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced that land prices rose in 89% of surveyed sites nationwide and in all residential locations surveyed in Tokyo, according to the MLIT’s fourth quarter (October 1, 2015 to January 1, 2016) report.
The LOOK Report is a quarterly land survey of intensively used land, seen as one of the key lagging indicators of land price trends.
Key takeaways from the Q4 report include the continued growth of land prices in Nagoya (up for 11 consecutive quarters) and the effect of increasing inbound tourism on commercial land prices.
Flat 35 Mortgage Rate Falls to 1.250% Lowest in History
Real Estate Japan
The Japan Housing Finance Agency (JHFA) has announced that the March 2016 rate for “Flat 35” home mortgage loans is 1.250%, the lowest level in history. Flat 35 loans are one of the most widely used home mortgage products in Japan, and March is the third consecutive month where the rate has fallen.
Asian Outbound Property Investment Sets New Record in 2015 at $62 Billion
World Property Journal
Asian outbound real estate investment reached another record high year in 2015, standing at $62.4 billion–a 37% year-on-year increase.
Japan’s Oct. to Dec. business investment up 8.5%
Nikkei Asian Review
TOKYO (Kyodo) — Capital spending by Japanese firms climbed 8.5 percent in the October to December period from a year earlier, the government said Tuesday, but the pace slowed from an 11.2 percent rise in the previous quarter amid an uncertain global economic outlook.
In Japan, the Government Gets Paid to Borrow Money
The Wall Street Journal
The Japanese government for the first time Tuesday issued benchmark 10-year bonds with negative yields, meaning it is effectively charging investors for the privilege of lending it money.
Uncertainty over negative and My Number may spur Japanese to stash more cash at home
The Japan Times
The negative interest rate, in particular, may be the last straw for a lot of consumers, who are already receiving next to no interest for either normal accounts (futsū yokin), which earn around 0.025 percent, or time deposits (teiki yokin), which earn a tiny fraction more. In most major banks, these rates will drop further, and while reports say that no banks are planning to charge depositors, they may raise fees for ATM use and other services, thus giving consumers more of a reason to remove their money.
For last week’s report, please see this post.
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